Specialist Peter Mazza works at his post on the floor of the New York Stock Exchange, Monday, Feb. 23, 2009. Investors unable to extinguish their worries about a recession that has no end in sight dumped stocks again Monday. The Dow Jones industrial average tumbled 251 points to its lowest close since Oct. 28, 1997, while the Standard & Poor's 500 index logged its lowest finish since April 11, 1997. (AP Photo/Richard Drew)

A key consumer confidence index has plunged to its lowest level since the measure was first taken in 1967, as worries about jobs, banks, stocks and foreclosures all deepened the national sense of gloom.

The Conference Board, a business research consortium in New York, said its monthly index sank to 25 in February.

Any reading below 80 signals a worrisome dip in confidence, said Conference Board researcher Lynn Franco, who derives the index by surveying 5,000 Americans each month.

"We've never had such lows before," said Franco, who has seen confidence sink to record levels since the current financial crisis began last fall.

February's reading was down from January's 37.4, which already was far below the 43.2 level that had prevailed in 1974 - the prior low ebb of this confidence index.

Wall Street shrugged off the confidence numbers and rallied Tuesday after Federal Reserve Chairman Ben Bernanke told Congress the recession might end this year. The Dow rose 3.3 percent to 7,351 and the Nasdaq gained 3.9 percent to 1,442.

"Job losses have become the No. 1 worry, followed by stock and housing prices," said Kenneth Rosen, a professor of urban economics at UC Berkeley's Haas School of Business. "Look at retail sales. People are not just saying they're not confident. It's reflected in their behavior."

Analysts said retailers used Christmas discounts and post-holiday season promotions to entice shoppers, but consumer reluctance and lower margins sapped fourth-quarter profits.

Home Depot Inc. lost $54 million, mostly due to the Atlanta home-improvement chain's decision to close its Expo Design Center, Yardbirds, Design Center and HD Bath stores plus cut 2 percent of its workforce, or 7,000 jobs. In the Bay Area, that means the loss of four Expo and Design Center stores, five Yardbirds and about 600 jobs.

Fourth-quarter earnings for Macy's Inc. fell by nearly 59 percent to $310 million, or 73 cents per share, compared with $750 million, or $1.73 per share, for the same quarter a year earlier. Same-store sales, or sales at stores open at least a year, dropped 7 percent.

Macy's numbers were dragged down by the Cincinnati company's plan to close 11 stores, cut 7,000 jobs and consolidate regional divisions, including the elimination of its Macy's West division in San Francisco. That division closure means the loss of 1,400 jobs in the Bay Area.

Ritz Camera Centers Inc. filed for Chapter 11 bankruptcy protection in Delaware on Sunday. The 91-year-old company is the nation's largest retail photography chain.

The fate of the privately held company's 800 stores - including 40 Bay Area Ritz, Wolf Camera and Presto Prints stores - remains unclear, along with the company's Boater's World Marine Centers. The company could not be reached.

February's dire national consumer confidence reading echoes the downbeat results of a recent survey of local business leaders conducted by the Bay Area Council.

"Whether it's consumers or businesspeople, it's hard to be confident about the economy when there seems to be very little to be confident about," said council President Jim Wunderman.

He said the core issue facing the economy remains the weakness in the financial sector, which has made those with money hesitant to invest while also making it harder for borrowers to get funds.

"If we could get the financial system to settle down, that would help," Wunderman said.